Geo-blocking punters

[mardigras]

I think the optimist wrote this..

A release from that contract would see TAB NZ unencumbered and free to negotiate a partnering arrangement. Even better, TAB NZ has suddenly risen in value to the tune of hundreds of millions (possibly as much as $1 billion) because of two substantial new money-spinning changes that will occur within 18 months to two years.

The first – geo-blocking betting in New Zealand, as they have done in Australia. When in Australia, you cannot bet with a betting agency outside the country. The round-figure estimation of $480 million bet annually offshore by New Zealanders would divert to TAB NZ.

I doubt this would happen. If I was unable to bet where I wanted to, I simply would not bet. Or I would use an alternative method. And the estimated $480m is a made up number.

The calculation of overseas online betting losses of $480 million annually comes through Kiwibank monitoring the monthly amount it processes for all forms of gambling, including online casinos. They process $30 million a month through credit cards, and Kiwibank represents only 15 percent of New Zealand’s banking turnover.

How did they decide the % of deposits to determine losses, the % of deposits that are for horse/sports betting?. I'd expect a reasonably high number of punters to deposit using credit card, and withdraw to a different account. if I deposit $5k from a credit card, and withdraw $6k into my bank account, how much of the $5k was deemed in their calculation to be losses?

As for the Strathayr attracting overseas punters - yeah right. The same horses running around on a Strathayr that would otherwise have run around at the old Ellerslie - how exciting. I'd expect the Strathayr to deliver zero benefit to NZ racing, over and above what spending less money would have done to Ellerslie if they had bothered fixing it properly. 

Edited August 26, 2022 by mardigras

[curious]

2 hours ago, mardigras said:

The calculation of overseas online betting losses of $480 million annually comes through Kiwibank monitoring the monthly amount it processes for all forms of gambling, including online casinos. They process $30 million a month through credit cards, and Kiwibank represents only 15 percent of New Zealand’s banking turnover.

How did they decide the % of deposits to determine losses, the % of deposits that are for horse/sports betting?. I'd expect a reasonably high number of punters to deposit using credit card, and withdraw to a different account. if I deposit $5k from a credit card, and withdraw $6k into my bank account, how much of the $5k was deemed in their calculation to be losses?

Agree this number is a crock of shit and the method for calculating it is totally illogical as you point out. It is not correlated to punter losses in any substantive way. With something like 90% of overseas bookies paying GST on NZ punter losses, they should be able to get a reasonably accurate assessment of those from the IRD but seem to prefer to float around these completely unfounded figures to make their case for Geo-blocking, not that that is likely to do much good anyway as you also say. It may be a negative on overall revenue.